The Effects of Job Insecurity on Employees’ Financial Well-Being and Work Satisfaction Among Chinese Pink-Collar Workers

Abstract

This article examines the effects of job insecurity on employees’ financial well-being and work satisfaction. Based on a literature review on financial well-being, we proposed that financial well-being consists of two categories: personal financial well-being and family financial well-being. We developed a theoretical model that links job insecurity to employees’ personal and family financial well-being, and then to employees’ work satisfaction. Data were collected from 334 Chinese pink-collar workers in Macao. Results of the structural equation modeling showed that job insecurity negatively and significantly influenced employees’ personal financial well-being whereas employees’ personal financial well-being positively and significantly influenced work satisfaction directly and indirectly through employees’ family financial well-being. However, the direct relationships between job insecurity and employees’ family financial well-being and between job insecurity and work satisfaction were not significant.

Analysing Literature on Financial Well-being: A Bibliometric Approach

“…The third thematic area relates to the links of financial well-being with major macroeconomic indicators such as the economic growth of nations (Hampson et al, 2018). Also, recent research has focused on individual life stages and negative events (Chatterjee et al, 2019; Sharma, 2015) and organizational consequences (To et al, 2020) which are the other two thematic areas.…”

“…By developing a theoretical model, Choi et al (2020) confirmed that job insecurity leading to lower levels of financial well-being is a major source of stress among individuals and employees. Similarly, poor levels of financial well-being have been connected with lower levels of work satisfaction (To et al, 2020). They also support Prawitz et al ’s (2006) remark that financial stress negatively influences employee productivity.…”

“…The articles in cluster 1 (coded as red) are primarily based on quantitative methodologies (Aydin & Akben Selcuk, 2019; Bayuk & Altobello, 2019; Losada-Otálora & Alkire (née Nasr), 2019; Temple & Williams, 2018). A similar research approach has been employed in the other four clusters (Bonke & Browning, 2008; Chatterjee et al, 2019; Chen & Livermore, 2020; Hampson et al, 2018; To et al, 2020; Yeo & Lee, 2019). The reviews reveal a dearth of qualitative research on financial well-being.…”

Examining theories, mediators and moderators in financial well-being literature: a systematic review and future research agenda

“…In addition to the above-discussed studies, financial well-being has also been examined as a mediator by several researchers including Shim et al . (2009) and To et al . (2020).…”

“…(2009) reported that the financial well-being of young adults mediates the relationship between socializing agents and personal values and life success. On the other hand, To et al . (2020) demonstrated that both employees, as well as family's financial well-being, mediate the relationship between job insecurity and work satisfaction among Chinese pink-collar employees.…”